You are required to analyse what will happen to ASU/USD exchange rates in the next 3-6 months. you are required to analyse ASU/USD exchange rates based on the economic indicators of the respective countries.

The indicators you learn in this subject include1relative interest rates, 2relative inflation rates,3 relative growth rates, 4government intervention, 5exchange rate expectations. You may also use other factors such thecurrent global health crisis (COVID-19 pandemic), geo-political climate, and latest newsthat may affect the exchange rate.

For news and market data, you may accessEikon Online,a professional financial data platform used by industry practitioners and experts. You can also use professional magazines,newspapers and financial institutions website (e.g IMF, World Bank, OECD databases and the respective country's central bank website).

Note that when it says relative, you are required to compare factors relatively e.g., if you are looking at the AUD/USD and you want to analyse interest rates, you must compare Australia's interest rate with the US interest rate. In your analysis, if you have looked at a particular indicator you must write why you believe that this indicator will cause a currency to appreciate or depreciate against another. For example, if the interest rate in the US is higher than in Australia and that the interest rate may increase in the US and you believe it will cause the AUD to depreciate against the USD, you need to explain why this causes depreciation. In addition to examining various macroeconomic indicators (often referred to as fundamental analysis), the historical behaviour of exchange rates can also be analysed to predict future behaviour (technical analysis).

Once you have completed your analysis, you must state clearly what you believe will happen to the currency pair of your choice. For example, if analysing AUD/USD and you expect the exchange rate to go down, you should state that the AUD would be expected to depreciate against the USD.

You are expected to source your information and relevant statistics from reputable sources.DO NOTuse generic sources such as Wikipedia otherwise this will attract penalties. These sources get their information from official sources therefore you should be able to get the data from these official sources. For example, if you are after the cash rate of Australia, you can easily source that from the Reserve Bank of Australia.Any information included from other sources must be appropriately referenced using Harvard referencing style.

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